If a third party has filed or registered your brand in mainland China, you are rarely out of options, but the right option depends on where the squatter's mark stands in the process, how long it has been registered, and what evidence you hold of your own use and of their bad faith. China is a first-to-file system: a foreign registration or years of sales elsewhere do not by themselves give you rights in China.
This guide is for overseas brand owners, including those whose brand was filed by a former distributor, an OEM factory, an agent or an unrelated "trademark trader". It explains the four legal routes, the evidence each one needs, and when a negotiated purchase is the more sensible business decision.
1. First, find out where the squatter's mark stands
Search the mark on the China Trademark Office database (sbj.cnipa.gov.cn) in English, Chinese characters, pinyin and any logo form. Note the applicant, filing and registration dates, the goods and services covered, and how many other marks the same applicant owns. That last point often becomes your best evidence of bad faith.
File an opposition
Anyone may oppose on absolute grounds, and prior rights holders on relative grounds, within three months of preliminary publication (Art. 33). From 1 January 2027 the window shortens to two months (2027 law Art. 36), so watch services matter more.
Seek invalidation
A prior rights holder or interested party may request invalidation on relative grounds, such as agent squatting or pre-emptive registration of a mark already in use with some influence, within five years of registration (Arts. 15, 32 and 45; 2027 law Art. 51).
Absolute grounds or well-known status
The five-year limit does not apply to registrations obtained by deception or other improper means, including mass filings with no intent to use (Arts. 4 and 44). It also does not bind the owner of a well-known mark against a bad-faith registration (Art. 45).
Non-use cancellation
Anyone may apply to cancel a registration not used for three consecutive years without justifiable reason, and the registrant must prove use (Art. 49). This is often the cheapest route against trademark traders who never sell anything. From 2027 the CNIPA may also cancel idle marks on its own initiative (2027 law Art. 57).
2. Which grounds fit your facts?
- Your distributor, agent or factory filed it. An agent or representative who registers the principal's mark in its own name without authorisation can be blocked or invalidated (Art. 15). Chinese practice reads "agent" broadly, and parties with a contractual or business relationship who knew of your mark are also caught. Your distribution agreement, emails, purchase orders and factory correspondence are the core evidence.
- You were already using the mark in China. Pre-emptive registration by improper means of a mark another party already uses in China with "a certain influence" can be challenged (Art. 32). Use outside China carries little weight on its own; collect dated evidence of sales, advertising, trade fairs, e-commerce listings and media coverage that reached Chinese consumers.
- The applicant is a trademark trader. Applications without intent to use (Art. 4) and registrations obtained by other improper means (Art. 44) can be attacked without the five-year limit. Evidence of dozens or hundreds of filings copying other brands, or offers to sell the mark back to you, is typically decisive.
- Your mark is famous. Well-known mark protection can reach across classes, but recognition is decided case by case and requires substantial evidence of reputation in China. The 2027 law extends cross-class protection to unregistered well-known marks as well (2027 law Art. 21).
3. If the squatter comes after you
Squatters do not only sit on marks. Some file take-down complaints against your listings on Chinese e-commerce platforms, record the mark with Chinese customs to intercept goods, or sue your distributors. This matters even if you only manufacture in China for export: in its 2019 Honda decision, the Supreme People's Court confirmed that OEM production for export can infringe a Chinese registration in some circumstances.
- Prior use defence. If you used the mark in China with some influence before the squatter's application, you may continue using it within the original scope, though the registrant may require you to add a distinguishing mark (Art. 59; 2027 law Art. 73).
- Abuse of rights. Chinese courts have refused to support infringement claims based on marks obtained in bad faith, most notably in the Supreme People's Court's Guiding Case No. 82. From 2027, a party who brings a trademark suit through malicious collusion or fabricated facts can be held liable for the defendant's losses (2027 law Art. 81).
- Non-use as a damages shield. A registrant who cannot show use in the prior three years generally cannot recover damages (Art. 64; under 2027 law Art. 78 the three years run back from the infringement rather than from the lawsuit).
4. Should you simply buy the mark back?
Sometimes, yes. A negotiated assignment can be faster and cheaper than two or three years of opposition, invalidation and appeals, especially when you need to launch or keep goods moving now. The trade-offs are real, though: paying encourages the same squatter to file again, and a poorly structured deal leaves gaps.
Keep leverage while talking
File your invalidation or non-use cancellation first where possible, and negotiate through an intermediary rather than revealing how urgently you need the mark.
Take everything, not one mark
Identical or similar marks on similar goods must be assigned together, so the assignment should cover all related filings, include a covenant not to file again, and withdraw any complaints or customs recordals.
Close the gaps
Record the assignment with the CNIPA (it takes effect on publication), file your own applications in the classes and subclasses you actually need, and add your Chinese-language name.
5. What changes on 1 January 2027
- Shorter opposition period: two months instead of three (2027 law Art. 36).
- Penalties for bad-faith filers: warnings and fines of up to RMB 100,000 (2027 law Art. 54), plus clearer grounds against filings without intent to use that clearly exceed normal business needs (Art. 19) and intentional pre-emptive registration (Art. 24).
- Ex officio cancellation of idle marks by the CNIPA (Art. 57).
- Liability for malicious trademark litigation (Art. 81).
- No transfer remedy. Earlier drafts would have let a prior rights holder ask for a squatted mark to be transferred to it. The final law did not adopt this, so the remedy remains refusal, invalidation or cancellation, followed by your own filing (analysis of the final text).
The practical point: the new law makes squatting riskier for squatters, but it does not hand your brand back to you. Filing early in China, in Chinese characters and in the right subclasses, remains far cheaper than any of the remedies above.
6. What to prepare for an initial review
The registration number or a screenshot of the squatter's record; your own registrations in and outside China; the history of your relationship with the applicant, if any; dated evidence of use and promotion reaching China; and any messages in which the squatter asked for payment. With that, the realistic route, cost and timetable can usually be assessed quickly.
Related service: China Trademark Protection ↗
The right route depends on dates, evidence and who filed.
We can check the squatter's record and filing history, map your evidence to the available grounds, and advise whether to oppose, invalidate, cancel or negotiate, and what to file for your own protection at the same time.
Related Reading
- How to Register Your Trademark in China: Chinese Brand Name, Subclasses and Timing
- Chinese Supplier Breached the Contract: What Can a Foreign Buyer Do?
- Counterfeits of Your Brand on Chinese E-commerce Platforms: Takedown, Raid or Lawsuit?
This article is general information about PRC trademark law as of 28 September 2026 and does not constitute legal advice. Available grounds, deadlines and outcomes depend on the marks, the goods and services, filing dates, evidence and the procedural rules that apply to each case.